133.
Fill in the blanks related to the characteristics of a promissory note:
1.The party promising to pay the note is called the ________.
2.The amount for which the note is written is called the _______ amount.
3.The date the note is to be paid is the _______ date.
4.The time between the date when a note is written and the time it must be paid is called the _____ of the note.
1. maker
2. face
3. maturity or due
4. term
134. Determine the due date and amount of interest due at maturity on the following notes:
135. Blackwell Industries received a 120-day, 9% note for $150,000, dated August 13 from a customer on account. OK
Required:
1.Determine the due date of the note.
2.Determine the maturity value of the note.
3.Journalize the entry to record the receipt of the payment of the note at maturity.
1.The due date for the note is December 11, determined as follows:
2.$154,500 [$150,000 + ($150,000 ´ 9% ´ 120/360)]
3.Dec11Cash154,500